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AFTER ETHICS COMPLAINT, MENENDEZ REPAYS $60K FOR TWO FLIGHTS – Michael Isikoff reports for NBC News: “U.S. Sen. Robert Menendez this month wrote a $58,500 check to a company owned by a South Florida eye doctor and political fundraiser to reimburse him for two personal flights to the Dominican Republic that the New Jersey Democrat did not report on his Senate financial disclosure form, his office confirmed to NBC News Wednesday night. The disclosure came as law enforcement sources confirmed that FBI agents searched the West Palm Beach, Florida, offices of the doctor, Salomon Melgen, Tuesday night as part of an investigation that includes agents from the Department of Health and Human Services. Melgen is a major Democratic political donor and fundraiser who together with family has contributed more than $200,000 to Democratic candidates, including $33,000 to Menendez.

-- “Menendez’s office confirmed that the senator — who this week became chairman of the Senate Foreign Relations Committee – wrote the check to Melgen from his personal account after aides reviewed his flight schedule in response to a complaint that a New Jersey Republican official filed with the Senate Ethics Committee last November. The complaint alleged that Menendez violated Senate Ethics rules by ‘repeatedly flying on a free jet to the Dominican Republic and other locations’ and that the jet was provided by Melgen.

--“‘This was sloppy,’ Dan O’Brien, Menendez’s chief of staff, told NBC News about Menendez’s failure to pay for the two 2010 flights at the time. ‘I’m chalking it up to an oversight.’ Asked whether the senator has been contacted by the Senate Ethics Committee about the matter, O’Brien responded: ‘We can assume the Senate Ethics Committee is looking at the allegation.’” http://nbcnews.to/TeZUTU

Newark Star-Ledger, A1, 5-col lead, “Friend’s crisis lands Menendez in the spotlight,” By Matt Friedman and Ted Sherman: “The allegations — anonymous and unsubstantiated — have dogged Sen. Robert Menendez for months. The claim, given voice mostly by right-wing and conservative bloggers, was that the Democrat from New Jersey had repeatedly flown to the Dominican Republic aboard the private jet of a wealthy supporter and engaged in trysts with prostitutes — at least one underage. Menendez vigorously denied the charges after allegations were published on a conservative website during his re-election campaign. But it came to light once again Wednesday, in the wake of a surprise FBI raid in Florida on the offices of Salomon Melgen — a high-profile Palm Beach ophthalmologist with major tax problems who has given tens of thousands of dollars to Menendez and other Democrats in recent years and has allowed the senator to charter his jet.

MENENDEZ DENIES PROSTITUTE ALLEGATIONS – The senator’s office released this statement Wednesday after the Miami Herald’s story about the FBI raid: "Dr. Melgen has been a friend and political supporter of Senator Menendez for many years. Senator Menendez has traveled on Dr. Melgen’s plane on three occasions, all of which have been paid for and reported appropriately. Any allegations of engaging with prostitutes are manufactured by a politically-motivated right-wing blog and are false."

HAGEL IN THE HOT SEAT – At 9:30 a.m., former Sen. Chuck Hagel (R-Neb.), President Obama’s pick to become the next defense secretary, testifies before the Senate Armed Services Committee in Dirksen G-50.

WHAT HAGEL WILL SAY – The Los Angeles Times’ David S. Cloud and Michael A. Memoli report: “President Obama’s nominee for secretary of Defense, former Sen. Chuck Hagel, will stress at his confirmation hearing Thursday that he opposes letting Iran acquire nuclear weapons and will focus on developing military options to set back Tehran’s program, according to a U.S. official familiar with his planned testimony. It will be Hagel’s first chance to explain his views publicly since his selection last month ignited fierce opposition from several former Republican colleagues and pro-Israel groups. They contend Hagel was not tough enough on Iran during his two terms as a GOP senator from Nebraska, and warn he might not push for a U.S. attack on Iran if one is needed. ‘He’s going to be very clear that he fully supports the president’s policy of preventing Iran from getting a nuclear weapon,’ said the U.S. official, who spoke on condition of anonymity because Hagel had not yet testified. ‘His job as secretary of Defense is to ensure that the military is prepared for any contingency, and he believes all options should be on the table, including military options.’” http://lat.ms/UFChTS

RESUME CHECK: IS HAGEL UP FOR THE JOB? – Stephanie Gaskell writes for POLITICO: “There’s not much on Chuck Hagel’s résumé that screams secretary of defense. He’s not a former White House chief of staff, like Dick Cheney or Donald Rumsfeld. He never ran the CIA, like Leon Panetta or Robert Gates. He never worked inside the Pentagon. There’s one main job on his résumé — politician — and for Hagel, that’s the problem. The E-ring has seen its share of men who triumphed on the ballot and got gobbled up in one of the world’s biggest bureaucracies, where political skills are helpful but not as much as sheer organizational or budgetary mastery. So while senators may pepper Hagel’s confirmation hearing Thursday morning with questions that have dominated the public debate so far — over whether he harbors views that are anti-Israel and anti-gay — they may skip the toughest question that’s gone largely unaddressed: Can he tame the building and command the world’s most lethal war machine?” http://politi.co/XUo1Ek

-- The Washington Post’s Chris Cillizza and Aaron Blake flag five senators to watch at today’s hearing: Ted Cruz, Kirsten Gillibrand, Lindsey Graham, Jim Inhofe and John McCain. Of McCain, they write: “The history of faded friendship between Hagel and McCain makes this perhaps the most intriguing coupling of the hearing. McCain has withheld his endorsement from Hagel to date and said Sunday he won’t decide how he will vote until after the hearing. He and Hagel parted ways during the early part of the last decade over the way forward in Iraq, and in the immediate aftermath of Hagel’s nomination, McCain said he had “serious concerns about positions Sen. Hagel has taken on a range of critical national security issues in recent years.” Will McCain allow a once-close friendship to trump those policy concerns? Or will it be the other way around?” http://wapo.st/11a2E9P

WaPo, Style section front, “Chuck Schumer moves center stage,” By Jason Horowitz: “Even for Chuck Schumer, this has been a month of high visibility. As the master of ceremonies for President Obama’s second inauguration, the senior senator from New York introduced the president’s address with a rabbinical cadence that evoked, for ‘The Daily Show’s’ Jon Stewart, ‘post-Shabbat service announcements.’ Schumer also presided over the luncheon at Statuary Hall in the Capitol with jazz hands and toasts. (‘Slainte. L’chaim. Salud. Cent’anni.’) He concluded by directing attendees to the next event: ‘It’s now time to head to our next happy stop — the presidential parade.’

-- “Casual viewers who tuned in to watch the festivities could have been forgiven for mistaking Schumer for the president’s Borscht Belt footman. Actually, he’s become the president’s right-hand man on Capitol Hill. That’s a remarkable development. During Obama’s first term, Schumer groaned about the president’s naivete in espousing post-partisan “come together” platitudes. He anguished over the president’s tendency to cave in to Republicans. He bemoaned the president’s decision to push for health-care reform before ensuring that the economy was on a solid footing. He wanted to crush the opposition, not compromise. On Inauguration Day, though, the senator looked pleased by the president’s pronouncement of an assertive and almost Schumeresque progressive agenda. The man who publicly took the oath of office Jan. 21 had learned many of the hard political lessons that Schumer already knew in January 2009, when Obama was sworn in for the first time.

-- “But Schumer, too, has taken a new direction. At a time when Republicans are feeling battered and need a path back to electoral viability, Schumer has embraced Obama’s old bipartisan religion in a move to realize the president’s second-term agenda, and in the process attain so-far-elusive legislative accomplishments to solidify his power and status in the Senate.” http://wapo.st/VvhYI8

TRANSITIONS:CARPER SHAKES UP HOMELAND SECURITY STAFF – Sen. Tom Carper (D-Del.), who replaced Joe Lieberman as chairman of the Homeland Security and Governmental Affairs Committee, will announce his team later this morning:

-- Richard J. Kessler has been named Staff Director. Dr. Kessler most recently served as the Democratic Staff Director of the U.S. House of Representatives Foreign Affairs Committee. He was appointed to the House Foreign Affairs Committee as Staff Director by then Chairman Howard L. Berman (D-Calif.) in November 2008. Prior to his work on the House Foreign Affairs Committee, Dr. Kessler served as Staff Director and Democratic Staff Director for several committee and subcommittee positions including the Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia of the U.S. Senate Committee on Homeland Security and Governmental Affairs; the Subcommittee on Financial Management, the Budget and International Security of the Senate Committee on Governmental Affairs; the Subcommittee formerly known as the Subcommittee on International Security, Proliferation, and Federal Services. … A Sergeant in the U.S. Army from 1970-1973, Dr. Kessler served in Vietnam where he was awarded a Bronze Star, the Army Commendation Medal, the Vietnamese Cross of Gallantry, the Vietnamese Medal of Honor, and two battle stars.

-- John Kilvington has been named Deputy Staff Director. Since 2005, Mr. Kilvington has served as Staff Director and Democratic Staff Director for the Homeland Security and Governmental Affairs Committee's Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security. He has been Sen. Carper's lead staffer on issues and legislation that have come before the Homeland Security and Governmental Affairs Committee and its predecessor, the Governmental Affairs Committee, since 2001. During his time in the Senate, he has worked extensively on legislation related to the Postal Service, the National Archives, bankruptcy and legal reform, cybersecurity, and a number of efforts to combat waste, fraud, and abuse throughout the federal government.

-- Beth Grossman has been named Chief Counsel. Ms. Grossman has been on the staff of the Homeland Security and Governmental Affairs Committee since 2002 and has served as the Committee’s Chief Counsel since 2010. During her time with the Committee, she has played key roles in the investigations into the collapse of Enron Corp and the response to Hurricane Katrina and has worked on many of the significant pieces of legislation that have originated in the Committee, including the Intelligence Reform and Terrorism Prevention Act and the Post-Katrina Emergency Management Reform Act. Prior to coming to the Senate, Ms. Grossman was an attorney with the Federal Trade Commission, where she handled false advertising cases and started the FTC's program to assist victims of identity theft. Ms. Grossman is a graduate of Brown University, Harvard Law School and the Kennedy School of Government.

-- Emily Spain has been named Communications Director. Ms. Spain will oversee both Sen. Carper’s committee and personal office press operations. Ms. Spain has served as Sen. Carper’s Communications Director since March 2010. She joined Sen. Carper’s office after working in the House of Representatives for Congresswoman Lois Capps (D-Calif.). Ms. Spain began her time in Congresswoman Capps’s office in 2006 serving as Communications Director. Prior to working in the House, Ms. Spain spent a number of years working for various federal, state, and local campaigns as well as non-profit organizations both inside and outside of Washington, D.C. Her experience in campaign work includes serving as Press Secretary for now Sen. Mark Warner (D-Va.) during his 2008 Senate campaign. Ms. Spain, a California native, graduated from the University of California Los Angeles, earning a bachelor’s degree in History and Political Science.

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GOOD THURSDAY MORNING, JANUARY 31, 2013, and welcome to The Huddle, your play-by-play preview of the day’s congressional news. Send tips, suggestions, comments, complaints and corrections to swong@politico.com. If you don't already, please follow me on Twitter @scottwongDC.

My new followers include but are not limited to ‏@coreyboles and @ConawayTX11.

TODAY IN CONGRESS – The House is out this week. The Senate is in at 9:30 a.m. and votes at 12:15 p.m. on an amendment to the House-passed legislation to raise the debt ceiling. The chamber then will break for party caucus lunches and at 2:15 p.m. begin a series of votes on remaining amendments and final passage of the bill. The measure is expected to pass and be sent to the president.

AROUND THE HILL – Sens. Bernie Sanders and Sheldon Whitehouse speak on Social Security and veterans benefits at 10:30 a.m. in S-120. Sen. Dianne Feinstein meets with John Brennan, the nominee for CIA director, at 11:30 a.m. in Hart 331. Sen. Marco Rubio delivers remarks on middle class opportunity at the Association of Wholesalers-Distributors’ annual meeting at 1:15 p.m. at the Fairmont Hotel, 2401 M St. NW. Media must RSVP to Joy Goldman at jgoldman@naw.org.

GIFFORDS’ EMOTIONAL PLEA AT GUN HEARING: ‘YOU MUST ACT’ – Ed O’Keefe and David A. Fahrenthold write on A1 of the Washington Post: “She spoke just 72 words, reading slowly and carefully from a lined sheet of paper where a speech therapist had transcribed her thoughts. One of the many things former House member Gabrielle Giffords has lost is the congressional luxury of being long-winded. ‘You must act. Be bold. Be courageous,’ Giffords testified Wednesday in her first formal remarks on Capitol Hill since a shooting that nearly killed her two years ago. ‘Americans are counting on you.’ Giffords (D-Ariz.) was the first witness called by the Senate Judiciary Committee on Wednesday in a hearing that served as the congressional kickoff for a bitter fight about guns. …

-- “Four hours later, a lot had been said and very little had been settled. The memory of Giffords’s appearance gradually lost its solemn hold on the participants. At one point, a female gun rights advocate told a Democratic senator that he could not understand the appeal of a high-capacity ammunition magazine because he is “a large man” who doesn’t feel as vulnerable as a woman. But by the end, one thing seemed clearer: A consensus is emerging among lawmakers for an expansion of background checks for gun buyers, a proposal with far more bipartisan support than a reinstatement of the federal assault-weapons ban.” http://wapo.st/VxkqBiWatch Giffords here:http://bit.ly/14tcmlF

BOSTON GLOBE NOT IMPRESSED WITH PATRICK’S PICK – The editorial board writes: “William ‘Mo’ Cowan, Governor Patrick’s choice to fill the next four months of John Kerry’s term, has the requisite character, a solid knowledge of statewide issues, and has sounded the right notes of confidence and humility. But at 43, with only his stints as Patrick’s legal counsel and chief of staff as top-level credentials, Cowan counts as a surprising — and disappointing — choice. Simply put, Massachusetts is brimming over with political talent, including many potential picks of greater stature than Cowan, and many with vastly greater national experience. …

-- The Globe said Michael Dukakis, Victoria Kennedy or Barney Frank would have been better choices: “In the weeks leading up to the selection, Patrick emphasized his desire to diversify the Commonwealth’s leadership by picking a woman or a person of color. Cowan, who will be the state’s second African-American senator, could be an important role model for young black men. Still, the Bay State, with an African-American governor and three women in statewide elected office, isn’t entirely without diverse role models. Neither that consideration nor, frankly, personal friendship — Cowan is, foremost, a Patrick protege — should outweigh the need for Washington experience and clout when it comes to representing Massachusetts’s interests. At a moment when a new Congress is grappling with budget and immigration policies with profound implications for the Massachusetts economy, Patrick passed over candidates with infinite varieties of national experience in favor of one with none.” http://b.globe.com/11jcbKP

KERRY BIDS FAREWELL TO SENATE – Kate Nocera reports for POLITICO: “Sen. John Kerry gave a heartfelt farewell speech on Wednesday, leaving the Senate after almost 30 years to become the secretary of state. Kerry, who was confirmed by his colleagues on Tuesday by a vote of 94-3, was visibly emotional at times during his nearly hourlong speech as he said his goodbyes to the upper chamber, where he has served as a Massachusetts Democrat. ‘Five times, Massachusetts has voted to send me to the United States Senate. Yesterday, nearly three decades after the people of Massachusetts voted me into this office, the people I work with in the Senate voted me out of it,’ he joked. …

--“Kerry spoke about the potential greatness of the Senate and said that despite the gridlock that Washington is known for, the place is ‘extraordinary.’ ‘I do not believe the Senate is broken, certainly not as an institution,’ he said. ‘There’s nothing wrong with the Senate that can’t be fixed by what’s right about the Senate.’ …

-- “Kerry was nostalgic as he recalled his first time in the Senate as a Vietnam veteran testifying before the Senate Foreign Relations Committee some 42 years ago. ‘That’s how I first came to the Senate, not with my vote but with my voice,’ he said. Last week, he testified before the committee again — where he had served as chairman — but this time it was for his confirmation hearing. ‘It completed a circle which I never could have imagined drawing,’ he said.” http://politi.co/UDPMnk

KERRY THANKS REPORTERS, DAVID ROGERS – The Massachusetts senator singled out our own David Rogers during his farewell address: “And I thank the reporters who catch us in the hallways, trap us, ambush us in the hallways, and who despite all the changes and challenges in their own business still dutifully document the first drafts of American history. I thank all the incredible people who travel through these halls working incredibly hard to get it right, people of character who cover this place as a public service, not a sport -- and I thank them.

-- "I thank David Rogers for all that he has stood for so long in this institution. It is hard to imagine my job without seeing him in that long green coat waiting by the elevator after a late-night vote." Watch the video here:http://politi.co/VvmINU

FATE OF IMMIGRATION BILL COULD REST WITH RUBIO – David Drucker and Kyle Trygstad report for Roll Call: “The fate of an immigration overhaul rests almost exclusively with Sen. Marco Rubio, the Florida Republican whose star power with conservatives is crucial to moving a bill through Congress. President Barack Obama retains veto power, and Democrats hold the Senate floor. But no comprehensive immigration changes are likely to pass Congress without the healthy support of House Republicans. And Florida’s junior senator, perhaps more than any other Republican serving in Washington today, has the political credibility and communication skills to sell such complicated, sensitive legislation to skeptical conservative members, grass-roots voters and influential media commentators. Rubio’s position is all the more unique because congressional Democrats and Obama need him, too, and appear to realize his importance to the legislative endgame. … ‘If Rubio signals any mistrust or misgivings, the whole thing collapses,’ GOP pollster Brock McCleary said.” http://bit.ly/14td0zB

VITTER: RUBIO ‘NAÏVE,’ ‘NUTS’ ON IMMIGRATION REFORM – “Sen. David Vitter on Wednesday called Florida Sen. Marco Rubio ‘amazingly naïve’ and ‘nuts’ on the issue of immigration and slammed the new bipartisan reform proposal as ‘ridiculous,’ Mackenzie Weinger writes for POLITICO. The Louisiana Republican told ‘The Laura Ingraham Show’ that the blueprint unveiled by a group of eight senators is a plan that mirrors the ‘same old’ failed immigration reform of 1986. Rubio’s belief that enforcement mechanisms will work this time around is ‘just amazingly naïve,’ Vitter said.” http://politi.co/WQHK9f

WEDNESDAY’S TRIVIA WINNER – Jim Brewer was first to correctly answer that the late Sen. Olin Johnston defeated both Sens. Fritz Hollings and Strom Thurmond. He beat Thurmond in the Democratic primary in 1950 and Hollings in the primary in 1962.

TODAY’S TRIVIA – Brooke Yoder has a timely question today: Which governor and lieutenant governor team saw both of their members go on to win the presidential nomination for their party? First to correctly answer gets a mention in the next day’s Huddle. Email me at swong@politico.com.

GET HUDDLE emailed to your Blackberry, iPhone or other mobile device each morning. Just enter your email address where it says “Sign Up.” http://www.politico.com/huddle/

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